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Endogenous Intellectual Property Rights and North-South Trade

  • Schäfer, Andreas
  • Schneider, Maik T.
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    Even though most countries have agreed to a harmonization of intellectual property rights by signing the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), there is still much dispute about the optimal level of protection of intellectual property rights in the world. Particularly some developing countries argue that the high protection standards in TRIPS benefit the North at the expense of their own welfare. On the other hand, many developed countries, mostly located in the northern hemisphere, have the impression that the legal practice in the South leaves much to be desired. In this paper, we provide a framework unifying micro- and macroeconomic perspectives which is capable to analyze the North's and the South's incentives for providing IPR protection. This research suggests that current IPR policies are conducive for economic growth. Moreover, the South may experience welfare gains if the research productivity of the North is not too low.

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    Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis with number 48689.

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    Date of creation: 2011
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    Handle: RePEc:zbw:vfsc11:48689
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    1. Klette, Tor Jakob & Kortum, Samuel, 2002. "Innovating Firms and Aggregate Innovation," Memorandum 02/2002, Oslo University, Department of Economics.
    2. Martin L. Weitzman, 1995. "Recombinant Growth," Harvard Institute of Economic Research Working Papers 1722, Harvard - Institute of Economic Research.
    3. Lai, Edwin L. -C. & Qiu, Larry D., 2003. "The North's intellectual property rights standard for the South?," Journal of International Economics, Elsevier, vol. 59(1), pages 183-209, January.
    4. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    5. Eicher, Theo & García-Peñalosa, Cecilia, 2008. "Endogenous strength of intellectual property rights: Implications for economic development and growth," European Economic Review, Elsevier, vol. 52(2), pages 237-258, February.
    6. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
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